Overview
- News reports Friday citing an FCA freedom-of-information release show 574 no-deposit mortgages in the first nine months of 2025, a five-year high.
- Only a few lenders currently offer these loans, including Barclays, Lloyds and Skipton Building Society, and many set tight rules or require family savings as security.
- Skipton’s five-year fix charges 5.55% at 100% loan-to-value versus 5.28% with a 5% deposit plus a £999 fee, which adds about £29,822 in interest over 30 years on a £270,000 home.
- Zero equity at purchase raises the risk of negative equity if prices fall, which can trap borrowers by blocking a remortgage or a move.
- Bank of England data show nearly £6.6 billion of 90% mortgages in Q4 2025, the highest since the 2008 crisis years and a sign of broader high-LTV risk.